Store Lease-Tenant Oriented

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US-LT-C-988-1
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FAQ

Percentage rent, or a percentage lease, is a type of lease seen in commercial real estate. It is a rental charge based on the gross income of the tenant rather than a fixed monthly or annual value.

A net lease is a type of lease where the tenant pays a portion or all of the property taxes, insurance fees, and maintenance costs for a property, in addition to base rent.

Percentage leases are most commonly used for retail properties (especially malls). In a percentage lease, tenants pay a base rent plus a portion of the gross sales they make from conducting business in the building.

In a full-service gross lease, a tenant pays a base rate. All operating expenses, including property taxes, property insurance, utilities, and common area maintenance, are paid for by the landlord. Hence, why it is called full service!

Gross leases are most common for commercial properties such as offices and retail space. The tenant pays a single, flat amount that includes rent, taxes, utilities, and insurance.

A Triple Net Lease (NNN Lease) is the most common type of lease in commercial buildings. In a NNN lease, the rent does not include operating expenses. Operating expenses include utilities, maintenance, property taxes, insurance and property management.

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Store Lease-Tenant Oriented